China is the world's leader in fifth-generation (5G) network technology in terms of market deployment, said an executive with Switzerland-based chip and wireless solution provider u-blox.
"China is a very big market for telecoms, and naturally, has leadership in deploying such technologies," said Thomas Seiler, CEO of the global provider of positioning and wireless communication technologies for cars, industry and the consumer market.
This status will be reinforced by China's proven strong inclination to invest in the next step of technology, Seiler said.
"In terms of technology, however, 5G is very complex and needs the cooperation on a global basis among companies around the world for its realization," he added.
U-blox serves about 1,000 customers in China, with about 100 million of its integrated circuits (ICs) and modules installed in in-car navigation facilities, entertainment systems, gas and water meters, payment terminals and telecommunications infrastructure.
The company, which gets about 30 percent of its revenue from the Chinese mainland currently, had revenues of over $400 million in 2017.
"5G is a set of constantly evolving networks, and visible deployment and additional benefits for consumers will be first seen in sectors around the smartphone with applications such as ultra-high definition video, 3D gaming, mobile cloud computing as well as video monitoring," Seiler said.
China is leading in the international 5G development race, with user rates of the network in the country expected to reach 576 million by 2025, representing more than 40 percent of global use, according to an EY report released in June.
China has set a release date for the commercial launch of 5G in 2019 and a target for achieving large-scale commercialization in 2020.
Seiler said the company, a fabless house, does manufacturing with partners in the Chinese market but it is also considering setting up a research and development center to "be closer to the customers in a very important market and adapt the product to the local market."
Commenting on the rising uncertainties in world economic and trade relationships, the CEO said that ICs represent a global industrial chain.
"As such, we can only [hope] international cooperation is maintained and strengthened by all means, otherwise technology development will suffer," said Seiler.
He predicted China will see meaningful realization in the 5G sector by 2020 or later, and noted that his company faces no access issue in entering the vast Chinese market.
The chips and modules of u-blox have also supported China's BeiDou Navigation Satellite System (BDS) for years, making high-precision navigation available.
"With more BDS satellites available in orbit, our customers in China are getting better availability, better accuracy and can find their position much quicker," Seiler said.
